RAINMAKER MARKETING CORPORATION 281.537.1200

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Motel Real Estate Investment Syndicates - Continued...

Continued from page 1.

Construction Phase Syndicates.  Comparatively speaking, these syndicates are less risky than Pre-Construction Phase Syndicates, but generally more risky than Post-Construction Phase Syndicates (below).  Project Sponsors that do have a bankable firm commitment for the required construction mortgage financing loan are classified under this paragraph.  Each Construction Phase Syndication sales plan is based upon a minimum sales target; an amount equal to the imputed equity gap (the total project budget less total other financing proceeds), or $2,500,000; whichever is greater.  All Construction Phase Syndicates must have a proposed holding period not to exceed three (3) years.  The expected gross return paid to the investors is a range of 150% to 250%.

Post-Construction Phase Syndicates.  Comparatively speaking, these syndicates are the least risky and therefore require extended holding periods in order to create gross returns that are competitive with those in the other categories (above).  Post-Construction Phase Syndicates are for properties requiring no materially significant construction operations as pending the closing of the Syndicate escrow.  These syndicates require a holding period of 7 to 10 years in order to generate a gross return to the investor in excess of 250%.

The minimum investment is always the same - $25,000.00.  This allows for widest possible ownership, while enforcing a set of transaction ground rules that increase the transparency of all transactions and creates a secondary level of much-needed capital market liquidity for commercial real estate development finance transactions across the entire spectrum of industries.  If you are a developer of hospitality properties, then you need to consider the financial investment leverage this specific type of syndication approach provides.

Syndicates come in all shapes and sizes.  Rainmaker Marketing Corporation provides consulting support for the due diligence documentation requirements that control the participation of institutional investors.  Rainmaker Marketing Corporation offers:

Market Feasibility Studies.

Financial Feasibility Studies.

Capital Funding Plan Proposals.

Strategic Business Plan (Public Disclosure).

Statutory Entitlements Reviews (Investment Incentives).

Qualified Allocation Plan Drafting (New Markets Tax Credits and Bonus Depreciation Expense Allowance).

Find out what can be done for your lodging industry development program.  Talk to a Rainmaker Marketing Corporation consultant today.

Do You Know The Secret?

When it comes to commercial real estate development finance, it doesn't matter whether you need to raise $5 million or $50 million, the out-of-pocket costs, advance fees and project due diligence costs will always require the same relative investment dollars the promoters have to fund.  Do you know what that amount is?  Do you know the Secret?

Rainmaker Marketing Corporation can trace its history back all the way to 1989.  Incorporated in 1993, Rainmaker Marketing Corporation has evolved over time into a full-service business to business consulting firm.  Rainmaker Marketing Corporation’s initial specialization was in issues and documentation needs corresponding to the capital funding cycle for commercial real estate development projects with a primary focus on senior housing and health care related properties.  Today, Rainmaker Marketing Corporation serves all types of commercial income-producing property development program financing requests with a combination of feasibility studies, due diligence services, structured finance consulting and a focus on commercial real estate syndication services.  Rainmaker Marketing Corporation’s service area includes all of the continental United States, Canada, Mexico and the Caribbean Basin.

281.537.1200

Email: consultants@rainmakermarketing.com

Commercial Real Estate Development Finance, Due Diligence Documentation, Syndication & Project Management Consulting

15519 Dawnbrook Drive, Houston, Texas 77068.

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